Interbank Rates To Ease Further On N822.08bn Boost In Financial System Liquidity
There are indications that interbank rates will ease further this week amid anticipated boost in financial system liquidity, as treasury bills worth N822.08billion will mature via Open Market Operation (OMO).
“We expect the market to close the week on a bearish note as market participants, especially offshore investors, seek to profit on their OMO winnings closing the month,” one dealer said.
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The Treasury-bills market traded last week on a muted note as participants shifted their focus to the OMO auction floated by the Central Bank of Nigeria (CBN) last week. Yields gapped higher in the secondary market in anticipation of a possible bearish shift in OMO stop rates, while buyers constrained by low cash remained on the side-lines.
At the OMO auction, the CBN issued a total of N150billion while maintaining the stop rates across the three tenors on offer.
Meanwhile, the Debt Management Office (DMO) ealier announced the redemption of Nigeria’s 6.75per cent $500 million Jan 2021 Eurobond, which matured on the 28th of January 2021.
This is contained in a recent press release published on the website of the Debt Management office.
According to the disclosure, funds have been made available by the Federal Government to the Fiscal Agent to repay the principal sum of $500 million and the final interest payment due on the Eurobond.
The Eurobond was issued 10 years ago in January 2011 and was Nigeria’s first foray into the International Capital Market (ICM). It’s worth noting that the Issuance of the Eurobond enabled Nigeria to diversify its sources of funding.
